Experiences in forex trading, by a special way.

November 24, 2022

Refresh psychology in Forex trading

Refresh psychology, a concept that sounds a bit strange, today I will share about the importance of this in the trading process, as well as on the journey to conquer the Forex market.


Psychological refresh is a state of self-regulating mentality and thinking about a certain milestone, from which you can adjust your actions and decisions when trading in the Forex market.

In my opinion, traders need to refresh their psychological state when in the following 3 stages:

1. Refresh the psychology when winning:

When you achieve winning trades, especially when you have a continuous series of winning orders, you will automatically create a state of excitement trading, confidence is increased beyond normal (and can gradually transform into complacency). With that over-excited mentality, you will certainly make mistakes in trading decisions, such as: Entering orders with a larger volume, being subjective in analysis and forecasting, entering trade orders translation does not completely satisfy the conditions of the trading system (non-standard signals still enter orders),...

So, when you encounter these situations, you need to calm down, and be more cautious with your decisions. Imagine that you never hit that winning streak. Or another solution, withdraw the profit you just made, then look at your account balance and think "now is just the beginning".

It sounds a bit difficult to do, but with practice it is completely achievable, and the effect of it is certainly very optimal.

2. Refresh the psychology when losing:

Similar to winning, when you encounter losing orders, or a series of consecutive losing orders, it is easy to fall into a state of panic, even self-doubt and no longer confident about the system own transactions.

If you encounter that, you should also "refresh the psychology" to start over, of course, it should be accompanied by serious analysis and search for reasons for the errors that lead to losses, so that there is a basis for overcoming them in the next trading orders.

Practice deep breathing, maybe even meditate, then stop trading until your mind is stable and calm again. Then, all your analysis and judgments as well as your actions will be truly objective and accurate as inherent in the trading system you have set up.

3. Refresh the psychology when blowing up the account:

Surely not rare traders have ever fallen into this situation: Exploding accounts.

It was a very unpleasant, even bad feeling. Because your hopes, your efforts, the process of trying and learning seem to have collapsed right before your eyes.

Of course, no one wants that to happen, but if it did happen to you, what should you do???

First, let's seriously look at the cause of the account blowing up, it can be:

- Because you broke the discipline, entered the wrong order with the wrong volume, entered the wrong principle of your own.

- Because you entered the full account (trading volume is too large).

- Due to your negligence, or because trading at a time is in an abnormal state of mind (too sad, too excited, or even too drunk)

- Due to the core factor of your trading system (constantly losing and losing a long process before blowing up the account)

- ...

Let's seriously look at and analyze carefully the cause of the account blowing up for what? And if it has been found, is it possible to fix it?

After that, you still need a period of downtime and rest, to review the above, and to make a decision whether to return to the market or leave? Be well prepared for both psychology and trading factors (trading system, trading method,...) if you plan to return to the market.

And if you decide to come back, you also need to refresh psychology, by imagining that the incident just happened never happened, and you are just getting started. The results will be worse if you "hold on" to the past, and the money lost by blowing up your account keeps hanging in your mind, it will make you impatient to "untie" that money. At that time, you just want to quickly "regain what was lost", without knowing that it is completely possible to "lose what is left".

Above are some sharing about Refresh psychology - a very important thing from my personal point of view, of course I also regularly apply and practice it every day. Hope this article will be of some use to you.

Best regards,

CaPhiLe.Com

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